A fixed asset register (FAR) is a list of

fixed assets Fixed assets (also known as long-lived assets or property, plant and equipment; PP&E) is a term used in accounting for assets and property that may not easily be converted into cash. They are contrasted with current assets, such as cash, bank acc ...

that belong to an

entity An entity is something that Existence, exists as itself. It does not need to be of material existence. In particular, abstractions and legal fictions are usually regarded as entities. In general, there is also no presumption that an entity is Lif ...

. Traditionally the fixed asset register was maintained in written form by a bookkeeper using a book that was set aside specifically for that purpose. Nowadays, it is more often held in electronic format in an accounting system. The main purpose of a fixed asset register is to keep track of the book value of the assets and determine

depreciation In accountancy, depreciation refers to two aspects of the same concept: first, an actual reduction in the fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears, and second, the allocation i ...

to be calculated and recorded for management and taxation purposes. A secondary purpose is to allow for the easy identification of an asset by assigning each asset a unique ID which may be printed on labels in the form of a

barcode A barcode or bar code is a method of representing data in a visual, Machine-readable data, machine-readable form. Initially, barcodes represented data by varying the widths, spacings and sizes of parallel lines. These barcodes, now commonly ref ...

References

{{reflist Fixed asset Financial accounting